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Basic Question 27 of 27
Which approach focuses on the flows needed to achieve long-term equilibrium in the current account?
B. External sustainability approach.
C. Reduced-form econometric model.
A. Macroeconomic balance approach.
B. External sustainability approach.
C. Reduced-form econometric model.
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain international parity relations (covered and uncovered interest rate parity, forward rate parity, purchasing power parity, and the international Fisher effect);
describe relations among the international parity conditions;
evaluate the use of the current spot rate, the forward rate, purchasing power parity, and uncovered interest parity to forecast future spot exchange rates;
explain approaches to assessing the long-run fair value of an exchange rate;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.